Real estate investment manager Valad Europe has acquired a 6,300 m2 shopping centre in the German town of Kelkheim, west of Frankfurt.

Real estate investment manager Valad Europe has acquired a 6,300 m2 shopping centre in the German town of Kelkheim, west of Frankfurt.

The investment volume for the purchase on behalf of the Valad European Diversified Fund (VEDF) was not disclosed.

The shopping centre at Wilhelm-Dichmann-Straße 2-4 was constructed in 1990 and has undergone substantial refurbishment in the last four years. Current tenants include an Aldi supermarket, a Woolworths department store and a Dirk Rossman drug store.

David Kirkby, Valad Europe's chief investment officer, commented: 'This is our first acquisition for VEDF in Germany and is indicative of the type of good quality, well located assets we are targeting, with strong credit tenants. We currently have in excess of €170 mln invested or under offer or exchanged, across a range of sectors, and we continue to seek deals in Germany and the UK as we build a fully diversified portfolio of assets that will benefit from the strong fundamentals of these markets.'

The Valad European Diversified Fund launched with initial equity of €180 mln. With leverage of 50-65%, it has initial fund capacity of €450 mln and second-stage capacity of €900 mln. The fund invests in core-plus/value add assets in Germany and the UK with individual lot sizes of between €5 mln and €45 mln. The fund will also invest in small to medium sized portfolios between €50-€250 mln.

Valad Europe manages €4.5 bn of investment and development assets across Europe, comprising 500 assets and 4,000 tenants, managed by local teams totalling 215 people in 22 offices and 13 European countries.